By Manya Saini<\/p>\n
April 1 (Reuters) – The global IPO market has needed a win for years and Elon Musk’s SpaceX could be the breakthrough. The last company to make a market debut at over a trillion dollar valuation was Saudi Aramco in 2019.<\/p>\n
An over “trillion-dollar” valuation, a \u200cCEO with a cult-like retail following and exposure to a high-growth industry – SpaceX has the elements the IPO market has sought to end \u200ca years-long drought in mega-deals.<\/p>\n
But whether investors have the appetite for a listing of this size remains uncertain. Besides, the company is so unique that its success could have limited spillover on broader \u200bmarket sentiment, analysts and experts said.<\/p>\n
“It’s either a bellwether or a harbinger,” Brian\u00a0Jacobsen, chief economic strategist at Annex Wealth Management, told Reuters.<\/p>\n
He added that there is enough enthusiasm around the business to attract investor interest, but it might be so singular, with its celebrity CEO, that it could actually hurt other space stocks rather than lift them by attracting all the attention.<\/p>\n
Here are some charts that show the market’s current status and SpaceX IPO’s potential:<\/p>\n
WORLD’S BIGGEST IPO ON THE HORIZON<\/p>\n
The rocket startup has confidentially filed \u200cfor a blockbuster listing, looking to raise $50 billion or \u2060more, which could value it at $1.75 trillion, potentially dethroning oil giant Saudi Aramco as the world’s largest IPO.<\/p>\n
“SpaceX will be far and away the largest IPO in history at the sizes being discussed now,” said Samuel Kerr, global head of equity capital \u2060markets at deals data provider Mergermarket.<\/p>\n
“It will be a real test for public market capacity at a time of real market turmoil. But if any business can list in this market, its probably SpaceX given the tremendous hype.”<\/p>\n
PIVOTAL TESTSpaceX’s listing could serve as a bellwether for the IPO market. A strong reception would indicate that a long-awaited recovery in \u200bbig-ticket \u200bdeals is finally underway.<\/p>\n
Years of volatile markets, driven by rising interest rates, inflation concerns and \u200bgeopolitical tensions, kept issuers waiting, even as the pipeline got \u200cbigger. The industry is hoping that 2026 will finally see a broad resurgence in market debuts.<\/p>\n
“A successful SpaceX listing could well act as a catalyst for other large-scale IPOs,” Kat Liu, vice president at IPO research firm IPOX.<\/p>\n
“It would demonstrate that public markets have both the depth and appetite to accommodate sizeable, high-valuation offerings, and could help validate current late-stage private market pricing.”<\/p>\n
TRILLION DOLLAR CLUB<\/p>\n
Several high-profile startups, including SpaceX, ChatGPT-maker OpenAI<\/a> and TikTok parent ByteDance, have blurred the line between private and public companies, with valuations that rival those of top-tier S&P 500 firms.<\/p>\n SpaceX’s listing will put it in the league of mega-cap giants such as Microsoft<\/a> and \u200cApple<\/a> that draw the lion’s share of both retail and institutional investor flows.<\/p>\n Elon Musk said \u200bin February that SpaceX had acquired his artificial intelligence startup xAI in a record-setting deal. The \u200btransaction valued SpaceX at $1 trillion and xAI at $250 billion, Reuters reported, citing \u200ba source.<\/p>\n “The recent xAI fold-in allows him (Musk) to bundle launch, Starlink, and AI into a single, scarce mega story that can \u200csupport a richer valuation than the businesses might achieve separately,” \u200bsaid Minmo Gahng, assistant professor of finance \u200bat Cornell University.<\/p>\n SpaceX generated about $8 billion in profit on $15 billion to $16 billion of revenue last year, Reuters reported in January, citing people familiar with the matter.<\/p>\n CURRENT STATE OF PLAY<\/p>\n An index tracking major listings has underperformed the equities benchmark over the past 12 months.<\/p>\n Analysts say a successful SpaceX debut could \u200bhelp reopen the window for large, long-delayed listings, particularly in \u200ccapital-intensive sectors that have struggled to attract public market investors.<\/p>\n Though some have taken a more cautious view of the broader market’s prospects.<\/p>\n “(SpaceX) \u200bcould take up so much capacity that other mega issuers might choose to hold off not to test the same window,” Mergermarket’s Kerr \u200bsaid.<\/p>\n (Reporting by Manya Saini in Bengaluru; Editing by Sweta Singh and Shinjini Ganguli)<\/p>\n","protected":false},"excerpt":{"rendered":"By Manya Saini April 1 (Reuters) – The global IPO market has needed a win for years and…\n","protected":false},"author":2,"featured_media":369503,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23],"tags":[350,85,46,1768,177878,51988,141,145,4688],"class_list":{"0":"post-369502","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-space","8":"tag-elon-musk","9":"tag-il","10":"tag-israel","11":"tag-market-sentiment","12":"tag-public-market","13":"tag-saudi-aramco","14":"tag-science","15":"tag-space","16":"tag-spacex"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/369502","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=369502"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/369502\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/369503"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=369502"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=369502"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=369502"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}